186 Lincoln Street - Boston, MA
Located in the city's South Station micro market, the 68,526 s/f office building was acquired by Morris & Morse in 2007. Currently, the building is 70% leased to a diverse range of tenants including Roche Diagnostics, Full Contact and Greystone Solutions.
186 Lincoln St. is positioned to take advantage of the class B tenant demand in the city's downtown office market, a product class that has benefitted greatly from small to mid-sized tenant migration out of Cambridge and the Seaport District. Consisting of floor plates that range from 6,000-9,000 s/f, open layouts across existing vacancy and attractive ceiling heights, 186 Lincoln St. caters well to new economy tenants seeking a downtown location. In addition, the building's proximity to the MBTA's South Station presents a desirable location for companies seeking to recruit a young and innovative workforce.
The CBRE/NE Capital Markets team led by Chris Angelone and assisted by team members John Meador, Bruce Lusa and Jessica Dowd, presented the sale of the asset as an opportunity to capture strong class B demand in the downtown marketplace and add value through the lease up of existing vacancy.
"We are pleased to have assisted the seller and procured the buyer in this sale," said Angelone, "Morris and Morse has positioned 186 Lincoln exceptionally well to meet the demand in the marketplace. There is no question in our mind that the building will continue to flourish under Brickman's stewardship."
On behalf of Brickman, CBRE/NE's Debt & Structured Finance Team secured acquisition financing for the asset. CBRE/NE's Carlos Febres-Mazzei, Kyle Juszczyszyn, Alex Bradley and Taylor Shepard arranged the financing with Rockland Trust.
Febres-Mazzei said, "Rockland Trust was able to understand the repositioning strategy for the asset and moved quickly to finance the property within an extremely tight timeline and a highly attractive loan structure for Brickman. We were fortunate to facilitate a new relationship between these groups moving forward."
"186 Lincoln St. is a well-located asset in a rapidly emerging neighborhood," said Brickman's Aaron Lazovik. "The property's construction is highly amenable to building space that caters to today's tenants and captures the momentum in the leasing market. Rockland's financing structure set up perfectly for our business plan."
Boston's South Station micro market consists of 1.3 million s/f of office space spanning across 22 buildings, 85% of which is class B product. Positioned between the Central Business District and the Seaport with exceptional transit infrastructure, average asking rents in South Station remain at a significant discount to neighboring submarkets, presenting an attractive investment opportunity with the overall class B market reporting a first quarter vacancy rate of 6.5%.
CB Richard Ellis - N.E. Partners, LP, a joint venture with CBRE Group, Inc. has offices in Massachusetts, Connecticut, Rhode Island, Maine and New Hampshire. CBRE Group, Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (in terms of 2014 revenue). The company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.
